Question

The compound interest earned by Suresh on a certain amount at the end of two years at the rate of 8 p.c.p.a was Rs.1,414.40. What was the total amount that Suresh got back at the end of two years in the form of principal plus interest earned?

• A. Rs.9,414.40
• B. Rs.9,914.40
• C. Rs.9,014.40
• D. Rs.8,914.40
• E. None of these

Answer 1

The correct option is B Rs.9,914.40

$P[{(1+\frac{8}{100})}^2-1]=1414.4\Rightarrow P[\frac{729}{625}-1]=1414.4\Rightarrow P=1414.4\times \frac{625}{104}=8500\text{Total amount to be returned}=8500+1414.4=Rs.9914.4$